A $40 million case study in what informal governance can’t survive
When a business is held together by nothing more than one family member trusting another, it works right up until the moment it doesn’t. The liquidation of two thoroughbred racing companies linked to the prominent Nakhle family is a textbook demonstration of what happens next.
Both Karaka Estate Limited and Bloodstock Partners Limited have been wound up after a bitter dispute between matriarch Henriette Nakhle and her son Daniel, with Henriette alleging he misappropriated more than $40 million. The family built its fortune in South Auckland property before branching into hospitality, education, quarrying and racing, and once featured on the…